Key industry drivers of globalization

Keyindustry drivers of globalization

Author’sname

Keyindustry drivers of globalization

Globalizationis the interaction and integration of markets on an internationallevel. In the recent past, globalization has accelerated, and itseffects felt throughout the market[ CITATION Ber13 l 1033 ].There aremyriad factors that stimulate globalization. The paper seeks todetermine the primary industry forces behind globalization.

Body

“Theprimary industry drivers to globalization are classified into fourcategories: government drivers, competitive drivers, cost drivers,and market drivers”[ CITATION Mic16 l 1033 ].

Governmentdrivers

Thegovernment strives to foster globalization through reduction of tradeand investment barriers, market liberalization and privatization ofstate-owned organizations[ CITATION Mic16 l 1033 ].The government should limit its policy involvement in investmentmatters.

Competitivedrivers

Businessorganizations strive to secure a large customer base across theworld thus move swiftly in entering foreign markets to guarantee acompetitive advantage. The increased demand for goods and serviceshas bolstered globalization.

Costdrivers

Globalizationhas been accelerated by the reduced costs of transport andcommunication technology[ CITATION Ber13 l 1033 ].Transport of goods and services across the world has been made easywith advanced technology the internet has enhanced the exchange ofinformation, resulting to quick and reliable means of communication.

Marketdrivers

Businessorganizations can reach customers across the world without alteringthe core business strategies[ CITATION Mic16 l 1033 ].Through economic development and modernization, businessorganizations can operate in any geographical region without theirphysical presence.

Conclusion

Globalizationhas significantly improved economic growth and development in manynations through the creation of employment, infrastructure, andincreased competition among local companies. On the other hand,opponents of globalization argue that foreign companies would degradethe environment, create unfair working conditions, and increase thespread of deadly diseases.

References

Bernhardt, C. (2013). Critically assess the main drivers of the globalization process. New York: GRIN Verlag.

MSU (Director). (2016). Key Industry Drivers of Globalization [Motion Picture]. Retrieved from: http://globaledge.msu.edu/content/onlinecoursemodules/32/key-industry-drivers-of-globalization/player.html